I have a doubt in the last entry amount Machinery purchased for $55,200 by Marigold Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with aresidual value of $4,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimateduseful life (including 2020) should have been 10 years, with a residual value of $4,600 at the end of that time. Assume straight-linedepreciation and that Marigold Corp. uses IFRS for financial statement purposes.Your answer is correct.Prepare the entry that is required to correct the prior years' depreciation, if any. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for theamounts.)Account Titles and ExplanationNo EntryNo EntryYour answer is correct. DAccount Titles and ExplanationDepreciation ExpenseAccumulated Depreciation MachineryeTextbook and MediaDebitPrepare the entry to record depreciation for 2020. (Credit account titles are automatically indented when the amount is entered. Donot indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts)List of Accounts0DebitCredit37200Credit3720 Your answer is correct.Repeat part (b) assuming Marigold Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 yearsand a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11years, with a salvage value of $100 at the end of that time. (Credit account titles are automatically indented when the amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answersto O decimal places, e.g. 5,275.)Account Titles and ExplanationDepreciation ExpenseAccumulated Depreciation MachineryThuthank and MediaYour answer is partially correct.Account Titles and ExplanationDepreciation ExpenseAccumulated Depreciation - MachineryRepeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credit account titles areautomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titlesand enter O for the amounts. Round answers to 0 decimal places, e.g. 5,275.)eTextbook and MediaDebitList of Accounts3772DebitCredit43663772Credit4366

Depreciation ; Depreciation is the reduction in the value of assets due to the continuous use of the…

epeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credi utomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Ent mnd enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Debit 4366 Cred

epeat part (b) assuming Marigold Corp. uses the double-declining-balance method of depreciation. (Credi utomatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Ent mnd enter O for the amounts. Round answers to O decimal places, e.g. 5,275.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation Machinery Debit 4366 Cred

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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